In this article we use structural econometrics to formally test whether the use of the alternative marketing arrangements (AMAs) by pork packers is the source of their market power on the spot (cash) market for live hogs. We specify the pork packers’ conjectures of the change in the industry total market procurement of live hogs through the spot market with respect to their AMAs stocks. The tes...

This note contains the equilibrium bid functions for two types of common-value procurement auctions: 1) a procurement auction in which bids represent an enforceable contract; 2) a procurement auction in which, upon learning the true cost of supplying the good, the winning bidder can renegotiate the contract with the buyer, and each bidder must submit a bond with their bid, which is returned at ...

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Transportation service procurement auctions are typically characterized by limited number of rounds and low profit margin. In this paper we address the bid determination problem for single-lane and combinatorial bids in the successive rounds of an auction, which maximizes the profit and also ensures winning. A profit factor (PF) is computed at each round using the industry average price for thi...